CNBC Television
Zohran Mamdani's impact on the wealthy: Here's what to know
11/5/2025, 2:02:28 PM
Economic Summary
- The population of New Yorkers earning $1,000,000+ has nearly doubled since 2010 to about 34,000, suggesting strong continued concentration of high incomes and an important tax base.
- Despite growth in absolute numbers, New York's share of national millionaires fell from 13% to 9% and the city's share from 7% to 4% since 2010, signaling relative loss to states like California, Florida, and Texas.
- The Citizens Budget Commission estimates New York State underperformance among high earners costs roughly $11 billion annually, with about $2.5 billion attributed to New York City, creating meaningful fiscal strain.
- A small number of very high earners have outsized fiscal impact: the top 1% pay ~40% of taxes, the top ~200 pay about 6–7%, and NYC hosts roughly 152 billionaires, so departures can force material budget adjustments.
- Housing pressure—median rent around $3,700—and conversion of real estate into seasonal or tax-advantaged ownership for the wealthy worsens affordability for middle- and lower-income residents.
- Political risk from the mayoral contest could make New York 'collateral damage' if federal or state actors retaliate, potentially jeopardizing infrastructure funding and economic projects.
Bullish
- Number of New Yorkers earning $1M+ nearly doubled since 2010; 34,000 now make at least $1M.
- Wealthy were less likely to leave after COVID compared with middle- and lower-income residents.
Bearish
- Loss of high earners reduces NYC/state tax base, forcing budget cuts when wealthy leave.
- New York's share of national millionaires fell, indicating talent and wealth migration to other states.
- Underperformance among high earners allegedly costs NY billions in annual tax revenue.
- Potential federal or political retaliation (e.g., infrastructure funding cuts) if mayoral fight escalates.
People mentioned
Robert FrankAndrewKathy HochulMamdaniDavid TepperSean DuffyJoeBessonDonald Trump